Boeing expected to announce layoff of more than 30,000 jobs Wednesday
WASHINGTON (AP) – Boeing is planning to lay off 20 to 30 percent of its commercial airline work force – roughly 31,000 people – as a result of the terrorists attacks, a congressional source said Tuesday.
The aircraft maker will make an announcement Wednesday, said the source, who spoke on the condition of anonymity. The company would not be announcing specific locations for the layoffs, but was telling lawmakers they are expected to be implemented by early 2002.
A Boeing spokesman would not comment Tuesday night.
Roughly 93,000 people work for Boeings’ commercial airline sector, much of which is centered around the company’s former headquarters in Seattle.
The White House and Congress are considering a federal aid package for the airline industry to help them recover from last week’s attacks.
The industry has asked for $24 billion. The House floated a $15 billion relief plan last Friday that could include $2.5 billion in immediate grants and $12.5 billion in loans and credits.
Though the White House and congressional leaders suggested a multibillion-dollar package was on the way, they weren’t offering a final dollar figure or timetable for debate.
The Bush administration could propose an aid package next week, Transportation Secretary Norman Mineta said. The House may move forward this week, when it returns from a recess for the Jewish holiday.
Boeing’s stock has plunged since markets reopened this week. On Monday, the first regular day of trading the price fell $7.60. The price was down $2.66, to $33.14, when trading closed Tuesday.
Major carriers had promised layoffs of at least 26,000 people – a number that could grow to 100,000. Many, including American, Continental, Delta, Northwest and United, have also scaled back their schedules by about 20 percent.
With such declines, analysts have said layoffs at Boeing may be an inevitable side effect as orders for commercial aircraft are certainly expected to drop.
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